SYSPRO Ribbon bar > Setup > Distribution > Inventory Setup > Actual Costing Conversion Review

Actual Costing Conversion Review

This program is loaded automatically when you switch on actual costing by lots or batch serials (Inventory Setup).

Actual costing uses the FIFO valuation architecture to track and process costs. This program lets you optionally review and re-distribute lot or serial quantities.

[Note]

  • For larger database sets, we recommend you choose the Conversion without review option, to reduce processing time.

  • Only the current month's quantity on hand will be adjusted on the FIFO table. The previous month 1 and 2 quantities on hand will remain zero.

  • A bulk insert of actual cost records may be required if FIFO valuation was not switched on prior to the actual cost conversion. Ensure that your Bulk insert temp folder path is valid (System Setup).

  • We recommend that (when prompted) you select to run an Inventory Balance after the conversion process.

Stock Codes

This pane displays the batch serials (or lots) for stock codes/warehouses in a treeview structure.

The Adjustment column indicates whether an adjustment record was created by the Actual Costing Conversion Review program. Adjustments are created when an imbalance occurs between the serial (or lot) quantity on hand and the serial (or lot) transaction quantities.

When you highlight a serial (or lot) the cost bucket information is displayed in the Actual Cost Buckets pane.

Adjustments

This pane displays details of the adjustment records created where an imbalance occurred between the serial (or lot) quantity on hand and the serial (or lot) transaction quantities.

Actual Cost Buckets

This pane displays the actual cost buckets created by the Actual Costing Conversion Review program, based on the serial (or lot) transaction records.

If more than one bucket exists for a serial (or lot) then you can move existing quantities from one bucket to another and save these changes. Note that the bucket quantities must still equal the quantity on hand against the serial (or lot) or you won't by able to save your changes.

Processing sequence

  1. An inventory valuation is run on the item, storing the total value.

  2. Stock items are processed as follows:

    • FIFO buckets are created according to the lot transaction file for Lot traceable items, if Lot traceable is selected at the Actual costing field (Inventory Setup).

    • FIFO buckets are created according to the serial transaction file for Batch serialised items.

      This applies when the Actual costing > Batch serial option is enabled (Inventory Setup).

    • Engineering Change Control (ECC) items are processed (excluding batch serialized items, if Actual costing is enabled for batch serials).

      All existing FIFO buckets are updated with the revision and/or release of all existing ECC-controlled items.

  3. All existing Goods in Transit FIFO buckets and Transfer FIFO buckets at stock code level are removed.
  4. Any existing FIFO buckets against the stock item are removed.

  5. New FIFO buckets are created as follows:

    • For each lot, batch serial and revision/release for ECC-controlled items (where the item is not lot traceable, i.e. dummy lots exist):

      • A FIFO bucket is created for each positive receipt, and transfer-in on the lot transaction table, recording the cost from the transaction and the receipt date.

      • The transaction is updated with the new cost and bucket fields.

  6. The transactions are reprocessed for the following transaction types: I - Issues, S - Sales, A - Adjustments (including physical adjustments), T - transfers, R - Receipts, D - Dispatch notes, starting at the oldest transaction and netting the buckets off with the transactions.

    At this point, the issue date is updated.

    [Note]

    • A bucket will not go negative

      If the issue quantity is greater than the quantity against the bucket, then the quantity in the bucket is subtracted from the issue quantity and then set to zero. This routine is repeated until the issue quantity is zero.

    • The new cost and bucket fields on the transaction are updated.

      If the transaction spans more than one bucket, then the average cost of the buckets used is the cost updated against the transaction record.

    For transactions which cause the bucket quantities to increase, the FIFO bucket issue date must be the same or later than the lot/serial transaction date.

  7. Adjustment records are created (if required) after creating the buckets based on the lot/serial transactions. Variance journals are created if the transaction records do not balance with the lot/serial quantity on hand. The variance journal type is t and the reference is ActualCst.

  8. Once all buckets are processed, you can review them and move quantities for a single lot/serial as required. The quantities must balance back to the lot/serial quantity on hand.